Over the last 2 to 3 weeks nifty seemed to be finding resistance at 8200 and was not able to cross these levels. About three weeks ago I had discussed the Nifty's long term charts and talked about the many important levels to watch, if the Nifty intends to correct, and this is happening right now. If you'd like to read more about my views on the Nifty's long term moves and various supports and resistances along with new targets you can refer to the previous blog "Modi-fying The Indian Economy & Markets at 8000 " here. Today I'm discussing the 60 min chart of the Nifty & in this chart I will discuss the moves on the Nifty in respect to the shorter term. As you can see in the chart the nifty is unable to move beyond 8200, but also it doesn't seems to be falling too much either so the market has entered a stagnation phase hence there is also the confusion of the further moves.

Now sooner or later every market has to break this sideways range. I am not predicting a downward movement of the market yet but if we are going to see more significant upward moves in the future, Nifty has to correct a little else it will weaken.

You can refer to the chart above & notice that I have drawn four horizontals lines at different levels, in my opinion one has to watch these levels carefully to catch the short to medium term trends in this market. If the market keeps trading below the level of 8070, it will confirm that it intends to correct, but for that to happen it will also have to break below the levels of 7910 first. If it does this we can easily see the market heading towards levels of 7800 and 7700.

Also on the chart above I have drawn a line at the price level of 7666, one has to be extra attentive at this level because if the market reaches somewhere around here it will bounce back very quickly and might aim for new highs as this is a very strong support.